An Unexpected Twist in the Celebrity Private Eye Case

By ALLISON HOPE WEINER

Published: February 16, 2006

Damage from the investigation of the celebrity private eye Anthony Pellicano reached the top of Hollywood's business community on Wednesday, when a federal grand jury issued wiretapping and conspiracy charges against the lawyer who handled Kirk Kerkorian's 2002 legal battle with his former wife.

The lawyer, Terry N. Christensen, and his Century City-based firm are a major presence in the entertainment industry, having represented Paramount Pictures, Sony Pictures Entertainment, the Walt Disney Company and MGM/UA, among others. The lawyer has represented Mr. Kerkorian for over 30 years, once served as president of the 88-year-old billionaire's private Tracinda Corporation, and has been involved with Mr. Kerkorian's recent investment in General Motors.

In the surprise indictment -- Mr. Christiansen had not previously surfaced in the long-running wiretap case, and was first contacted by the government only four weeks ago, according to a person who was briefed on the situation -- officials charged that the lawyer paid Mr. Pellicano at least $100,000 to tap the phone of Lisa Bonder Kerkorian. Ms. Kerkorian, the billionaire's former wife, was then involved in a bitter legal dispute over the paternity of her young daughter and child support.

Mr. Pellicano, who pleaded not guilty to charges of wiretapping and other crimes last week, was also charged in the new indictment.

Jan Handzlik, a lawyer for Mr. Christensen, said on Wednesday that his client intended to plead not guilty to the charges. He said Mr. Christensen became involved with Mr. Pellicano when the investigator called him from ''out of the blue'' with information about threats to Mr. Kerkorian and the girl.

''Mr. Christensen was deeply concerned about death threats against the life of his longtime friend and client, Kirk Kerkorian, and a 4-year-old child,'' Mr. Handzlik said. ''Terry acted to protect his friend of three decades and the life of the young girl.''

According to prosecutors, on about March 15, 2002, Mr. Pellicano received a call from a lawyer -- whose identity was not given -- who instructed him to contact Mr. Christensen about ''going after'' Ms. Kerkorian's lawyer, who had referred Mr. Christensen to the State Bar of California for disciplinary action. Ms. Kerkorian was represented at the time by Stephen Kolodny, who declined to comment Wednesday.

Prosecutors claim that Mr. Pellicano repeatedly listened to Ms. Kerkorian's phone calls and shared information from them with Mr. Christensen. At one point, according to the indictment, Mr. Pellicano cautioned the lawyer about a piece of information: ''There is no way, except with my unique techniques, that you would know this.''

Tracinda issued a statement on behalf of Mr. Kerkorian: ''Terry Christensen is a paragon of integrity who has always done the right thing throughout the 35 years I have had the privilege of knowing him.''

Patricia Glaser, a partner in the Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro firm, said its members were ''shocked'' that federal officials had sought the charges. ''Mr. Christensen has never hired anyone to conduct wiretapping or any other illegal activity,'' Ms. Glaser said in a statement.

The investigation into Mr. Pellicano's activities began more than three years ago when Anita M. Busch, a reporter who has written for both The New York Times and The Los Angeles Times, found dead fish on her vandalized car, with a note that said ''Stop.'' The incident was linked to Mr. Pellicano, and officials eventually raided his offices, found illegal weapons and evidence of widespread wiretaps and other activity that led to his imprisonment and current indictment on fraud and conspiracy charges.

Authorities have since charged several others. Earlier this week, Mark Arneson, Rayford Earl Turner, Kevin Kachikian, Robert Pfeiffer, and Abner Nicherie all pleaded not guilty to various charges at an arraignment here. The arraignment of Daniel Nicherie, also indicted, was postponed. On Wednesday, Joann Wiggan, a telephone company employee, was arrested in connection with the case, and two other associates of Mr. Pellicano pleaded guilty to related charges several weeks ago.

Mr. Christiansen, who is scheduled for arraignment next Tuesday, is the first prominent Hollywood figure to be indicted for dealing with Mr. Pellicano, though investigators have questioned many who used his services, including a lawyer, Bertram H. Fields, and Michael S. Ovitz, the former executive and talent agent.

Daniel Saunders, an assistant United States attorney on the case, said in an e-mailed statement on Wednesday that Mr. Christensen used illegally obtained information that ''changed the playing field'' in litigation. ''No attorney should stoop to such levels to gain a tactical advantage,'' the statement said.

A lawyer involved with the case disputed the government's contention that Mr. Christensen had paid Mr. Pellicano for wiretaps. The lawyer said the investigator was paid for legitimate work he did to assist the Christensen, Miller firm in a lawsuit involving Mr. Kerkorian.

Still, in the detailed indictment, government officials charge that Mr. Christensen was tied to the taps. On May 8, 2002, for instance, he is said to have told Mr. Pellicano that he liked what he had learned, and ''was thinking about sending 'a little more expense money' to cover the cost of the wiretap.''